About single rate of fuel gas for all
The industrial development so far achieved in Bangladesh is not rational if looked from regional approach. All the industrial units are concentrated around Dhaka and Chattogram districts as these areas have been enjoying very low cost fuel, natural gas. Most of the citizens within and nearby the two districts are the direct beneficiary of industrial development. A negligible portion of population from rest of the country have employment opportunity in the mentioned industrial units.
Availability of fuel gas at very low price is one of the significant factors for localization of industrial units in two regions of Bangladesh. Government has the responsibility to develop environment congenial to set up industrial units in every region of the country. As fuel gas supply in every region was not possible and will not be possible in near future, government has to make alternative arrangement for level playing field to industries. The industrial units those consume liquid fuel cannot compete with units those consume low priced fuel gas at Dhaka and Chattogram regions.
To develop all geographic regions price difference between gas and liquid fuel needs to be eliminated gradually. One commodity one price policy needs to be adopted to ensure natural justice. From 1 June 2017 following ten different rates have been prevailing e.g., electricity generation (public use) per cubic meter Taka 3.16; captive power per cubic meter rate in Taka 9.62; fertilizer production per cubic meter Taka 2.71; industry per cubic meter Taka7.76; tea garden per cubic meter Taka 7.42; commercial use per cubic meter Taka17.04; CNG per cubic meter Taka 40/ : house(meter) per cubic meter rate in Taka 11.20 ; house for single burner per month Taka 750/ and house for double burners per month Taka 800/.
In Bangladesh price of fuel natural gas is significantly low relating to liquid fuel. It has been mention that per cubic meter CNG gas rate is Taka 40 whereas for equal work one liter diesel costs Taka 57. Like other commodity fuel gas should has one single rate. Of course there should be difference between retail and wholesale price. Government does not pay same price to local and international gas exploration entities who are operating in Bangladesh. Local gas exploration companies are getting Tk 25 for per 1,000 cubic meter gas extraction, on the other hand, international companies are getting over two dollar for same quantity of gas they extract. Same price should be given to all gas extractors.
After LNG import and blending with local gas average gas cost to government has stands Taka 12.19 per cubic meter. At this stage, the consumer groups which are paying less than Taka 12.19 for one cubic meter fuel gas may be fixed to Taka12.19 per cubic meter. The consumer groups which are paying higher than Taka12.19 per cubic meter may pay the prevailing higher rate. This policy will reduce disparity of prices from consumer to consumer. The price will be more rational. Bangladesh Energy Regulatory Commission may start targeting to a single price policy gradually follow the suggestion mentioned above now.
Md Ashraf Hossain
Aftab Nagar, Badda,
Dhaka-1212.
